SunTrust to divest RidgeWorth Capital Management

SunTrust Banks Inc. plans to sell its asset management subsidiary RidgeWorth Capital Management Inc. to RidgeWorth employees and an investor group led by a private equity fund managed by Lightyear Capital LLC for up to $265 million.

The sale is expected to close during the second quarter of 2014 and yield Atlanta-based SunTrust (NYSE: STI) a $50 million after-tax gain.

RidgeWorth and its five institutional asset management boutiques collectively manage about $50.6 billion in assets. SunTrust had $189.4 billion in assets under advisement at Sept. 30, 2013. As of September 30, RidgeWorth contributed approximately $25 million to SunTrust’s year-to-date net income.